COMMERCIAL ITEMS.

Dominion, Volume 7, Issue 1882, 16 October 1913, Page 10

COMMERCIAL ITEMS.

. IXVLOTMKNT SHARKS. There were no 1 ivim-actions in invo-t----men I. shore. 1 ; yo?lerd;>y. The 11 notations were fi.'i under;Hnvpr*. Srllor?s- - s (1. j: d. 'Hank Xcsv Zealand -- 10 J7 f> National Hunk — Ji 8 0 Wo 11. Investment - 0 11 9 Well. Ti'u-if mill Loan ... 7 2 0 — Cnri.-lchmrh («as ...• ■ • .7 0 0 Standnnl ln-uranee 11" 0 1 12 6 (if.-ir Meat f SA) 13 0 0 — Gear Moat (£1) 3 9 0 — Wellington leny <18s.) ... 0 10 0 — "Union Steam (ord.) — 1 6 o We-tport-Kloekton 0 3 11 — Tarinsamntu Totara — 2 6 0 Golden Huv Cement - 10 0 W.RC.A. (.CM f. I<l 0 W.I'.C.A. («Ct) ~ 16 3 KKAHOICS FOR DEAR MONEY. The "Keononust," in dealing with the reac-on for dear money points out that behind the problem of short money and discounts lict* the still harder problems of the permanent relation between borrower and ■investor, the world's demand for capital, and the long movements in the rates of in*

lore.it. Is the borrower fn continue for years in the attitude oi' suitor, pleading cap in hand for aecnmmodation or .-.half w•: a recurrence of the old conditions, when lenders were piv.-\-:ing their spare capital on .-emi-ieii'itaui borrowers at. 3 and JJ per cent.? In .tlie past fifteen years an enormous development ha.-, taken place in a- number of young countries, which 111 the 'nineties were not greatly regarded <ts fields for invc-tmcnt, but which have t-.ince IliosD day; employed .European capital on an extraordinary ;:-;iie. ami 10 the great beneiit of their .own prc.-tigc. i-'a.-.hion has i-e: capital flowing freely in their direc-' lion, v.iih the ;esult that enormous sums have been ipcat in the development of land, railways, industry, and public utiliii':--. Unfortunately, much of the money has gone to waste. Of these young countries the mciit prominent are. perhaps. Canada, A\;;entiua Brazil, and Mexico, each one of which has had its own advantage.-; and attracted very large quantities of rapital. Canada iia-s demonstrated Its wonderful wealth in the development of the Canadian l'ucilic and oilier lines, in tl'.e success with which she has found employment for armi'es of immigrants, and in the wonderful growth ot her import oud export trade. She ha,-, had the benefit of a noisy "Imperial" ca.apaign in Great Britam, on immenea amount of advertising and strong newspaper interest, and her powers of attraction for the English "capitalist have been extraordinary. Argentina has proved her agricultural wealth by an amazing development of the production of cereals; she has been supported by n. very able group of filiaii.'jers in Great Britain, nnd a remarkably Bound and consistent Fet of investors, whose interest in her development has never wavered, yfexico as a field for investment lias been pushed by «n energetic and (successful coterie of Anglo-Cana-uians, and, until three or four years ago, was regarded by optimistic investors aa a country of settled government and peacoful growth.

The development of these now countries, tlio "Economist" points out. has been carried on Almost entirely with European money, and mainly with saving drawn from the pocket* of British investors, who have been to them very much what tho bank manager is to the young energetic trading firm, supplying them with fcroncy watehiug their growth with satisfaction, and taking toil of their industry or extravagance in coupons and dividend warrants. But in the history of young ilrms there often comes a time when the binlc manager grows less ready to advance, looks rather less favourably at their security, begins to think that be is seeing too much of their psjer, and decides to adopt a more cautious policy in future. Tho result is often embarrassing to the firm, for important enterprises have been started on the supposition that money can be borrowed till ita completion at a comparatively low rate of interest. A tightening of the market had not been contemplated, and a sudden withdrawal o£ the motivo power runs counter to all the estimates on which the iirm had boeu working. When tills situation is rosehed everybody is apt to feel uncomfortable; the bank manager because his banliu money is at stake, tho iirm because its development and perhaps its existence are endangered, and.the creditors of the Arm because they are deeply concerned with its success.

This chanjre in the attitude of the European capitalist will not be denied by anyone converrant with English finance, mm in considering whet-hcr, tho rate of interest i« soiiiT to full, whether the famine of capital is Koinfj to continue, the fart, Hint th-i change is taking place is of Kreat significance. If th; taps which supply capital to tho now countries were suddenly turned off, the rets of interest, as far as thov tire conccrncd, would |;Q up end their development would lio checked. This check would lwult in a- slackeniuc of European trade, which ha.?' depended fnr its stimulus partly oil their deniand. Tho interest 011 past loan,-, would still (low towards Erropo (exreot where interest payments depend upon cuuual borrowing), and there would he less export of capital to the export of coupons. Thus wo should have two caii'oc workinr: to the. same end— (!) a chock to Homo trade, and (2) a cheek t-o foreign, borrowing; and tho combined clTect miirht be to nive for tome time in tho United Kingdom mono:- rates which hv tho current standard would look remarkably chenn. Tho late Lord Goschei! published ip ifis «n 'essay 011 7 per cent., designed to sl'.ow tlvtt money was likely to become per-. mancT'tly dear. Three vrar.? later lm wrote a sister ossny on <1 per cent., osnlainius '•■•hv room."' had become permanently cheap. The two essays <110 now printed, side' by ride as a warning to all lesser publicists. Customs duty collected at. the port of Wellington yesterday amounted to £1586 2s. 4d.' FINANCIAL CABLEGRAMS. By Telesraph—Press Asrccin-tion-Copyrleht London, October 14. Yesterday's closing quotations were as follow, liauk of Australasia, buyers £113, tellers £115. Hank of New South Wales, buyers £08, Boilers -W'J.

Honk of Victoria, buyers £3 155., sellers £4 ss. ■ . .

"union Bank of Australia, buyers £54, sellora £55. National Honk of Australasia, buyers £5 -55., sellers £5 15s.

National Hani: of N'otv Zealand, buyers £•1 !£s„ pollers £5 5?. Hank of New Zealand, buyers £10 155., skiers £11 15s. I\.Z. Loan and Mercantile Agency 4 per cent, debeuturcs, £B9 ICO., ex tliv. C'ty of Melbourne, "4 per cent, deben. tnr--:. .-C93. . 1 Melbourne Harbour Trust 4 per cent, debentures, £97. Melbourne . Tramway Trust, <a per cent, debentures, £100. Melbourne and Metropolitan Board of Works, 4 per cent, debentures, £96. Australian Mercantile debentures. £90. Dalgety and. Co.. 4 per cent'.- debentures, £91. '• ■ Dalsety and Co.'s shares, buyers £6. sellCTf-' -'b 10fl. Urclbourno Gas Co.'s debentures. £97, City of Sydney, £90. •Goldsbroush. Mort and Co.'s debentures. £93 10s. Bank of New Zealand, 4 per ccnt. guarantecd stock, £100. . JUTEA 'London, 'October 14. The jute market is miiet. Nativo first marks, October-November shipment, arc quoted at £31 15s. per ton. j SILVER. Bar silver is fiuottnl at 28 5-16 d. per ounce standard.

WHEAT. London, October 14. Tlio wheat market is slow, with prices unchanged. Cargoes are neglected.